Why financing the right companies helps investors create value in society

They should transition portfolios to ensure returns match a more sustainable economy

Smoke rising from a factory chimney in Amritsar, India. Actively engaging firms to adopt a sustainable and ethical business can promote more stable investment returns in the long run, says the writer.
Smoke rising from a factory chimney in Amritsar, India. Actively engaging firms to adopt a sustainable and ethical business can promote more stable investment returns in the long run, says the writer. PHOTO: AGENCE FRANCE-PRESSE
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Interest in environmental, social and governance (ESG) investing keeps growing. Across the board, we are now seeing more asset managers and investors giving it greater attention.

There are many reasons for this.

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A version of this article appeared in the print edition of The Sunday Times on February 17, 2019, with the headline Why financing the right companies helps investors create value in society. Subscribe